ukpia statistical review 2010
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Statistical review
2010
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About UKPIA UKPIA represents the non -
commercial interests of and speaks
for nine companies involved in the
UK downstream industry, whose
activities cover refining, storage
and distribution, and marketing of
petroleum products.
Our members are:
UKPIA Statistical Review 2009
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Overview
Contents
Section Overview Page No.
1 EconomicContribution
2 Refineries
3 Road TransportFuels
6 Petrol Prices
7 Diesel Prices
8 Filling Stations
9 Air Quality
10 GreenhouseGases
11 Health & Safety
The refining and marketing sector is a major
contributor to the UK’s economy. 10
There are eight operational crude oil refineries inthe UK, which supply the equivalent of 90% of theUK’s oil product demand.
13
Petrol and diesel supply the vast majority of road
transport energy requirements. 17
19
Pre-tax petrol prices in the UK are consistently amongst
the lowest in Europe.
A wide variety of fuels are produced, and the jet fuel
market is expanding. 21
Pre-tax diesel prices in the UK are consistently amongst
the lowest in Europe.
23
The number of filling stations in the UK is declining; there
are now around 8,921.
25
UK air quality is improving; in part this is due to higher
quality fuels and improved vehicle technology.
27
Emissions of carbon dioxide from road transport per kmdriven are virtually static and the oil industry expects themto fall in the future.
29
The refining and marketing sector is one of the safest
industries in the UK.
34
All data is updated as far as possible. Where data is not available the most recent statistics have been used.
12 Service StationCrime
Service station crime costs the industry £20m a year.Ensuring the safety of staff and customers while reducinglosses is the industry’s main aim.
36
Introduction and overview of UK refining.4
4 Biofuels The introduction of biofuels is the biggest change to road
fuels in decades.
Introductions andOverview
38
5 OtherProducts
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Introduction from the President
I am delighted to be writing the
President’s introduction to the
UKPIA Statistical Review 2010.
In 2009 we marked the 30th
anniversary of UKPIA’s formation
and I think it would be fair to say
that it proved to be one of the most
challenging years for refiners in the
UK, and across the rest of Europe,
for many decades.
Before touching upon some of
the challenges that face us, it is
worth pointing out the value of
the information in the Review.
As usual, it gives an interesting
insight into some of the facts and
figures about the UK’s energy use
in transport, one of many areas
where our member companies
continue to play a crucial role in
supplying transport fuels and other
products that support everyday
life. But above all, accurate data
is an essential tool in business
decisions, particularly in the current
challenging conditions, so I am
pleased to acknowledge the work
of the DECC (Department of Energy
and Climate Change) statistics
group, UKPIA’s Secretariat and our
member companies for bringing all
this data together.
Industry and government working
together will be an essential feature
of meeting the future challenges
of the refining sector, as well as
addressing the wider energy issues
facing the nation, where refiningplays, and will continue to play, a
vital role in future security of supply.
UKPIA is closely involved in
contributing to a number of
downstream oil sector studies by
DECC, particularly those looking
at refining, supply and distribution
infrastructure and compulsory oil
stocking. All these areas have a
major impact upon our security
of supply in keeping the country
moving on the roads and in the air,whilst at the same time working to
reduce carbon emissions.
In opening, I mentioned the difficult
times we face. UK refineries, in
common with those in the rest
of the EU, are under enormous
pressure through a combination
of a tough operational climate
with reduced demand for oil
products, structural imbalances in
supply/demand and a challenging
legislative background in the EUand the UK.
Analysis of the European market by
energy analysts Wood Mackenzie,
indicated that the decline in
product demand and the volatile
market conditions during 2008/9,
affected European refining industry
profitability. Increased competition
from export refineries, particularly in
Asia, and reduced demand from the
USA, the traditional export market
for excess gasoline production inthe UK and the rest of Europe,
compounded the problems. Wood
Mackenzie expects these conditions
to persist until at least 2020 with
little recovery in demand expected.
UK refineries need to compete
for major investment funds with
other projects globally. A climate
conducive to the continued
development of a strong and viable
downstream sector needs to be
promoted and with this in mind,
UKPIA and its members are looking
at a number of key legislative and
other actions that we feel may help.
We look forward to addressingthese matters with the new Minister
and his team at DECC in the
coming months.
Finally, safety remains our number
one priority for the industry, as
outlined in UKPIA’s Commitment
Statement on Process Safety
Leadership. The ongoing work
to underpin delivery of our
commitments, working closely with
member companies’ specialists
through UKPIA’s Process SafetyLeadership Network, continues. We
also aim to draw on the experience
of all the high hazard industry
sectors through the Process Safety
Forum and in continuing support
of the cross-sector Process Safety
Leadership Group.
I should like to record our thanks
for everyone’s continuing input into
all these groups and the work of
UKPIA generally.
Brian Worrall
June 2010
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Processing Crude Oil in a Typical UK Refinery
Refinery operations can be broken
down into five main processes:
• Distillationwhichseparatescrudeoil
into different refinery streams
• Conversionandreformingwhich
improve the quality of these streams
and adjusts the yields to meet market
demand
• Desulphurisationwhichreducesthe
sulphur in the streams to the
required level
• Blendingoftherefinerystreamsto
produce the final products meeting
current regulations and specifications
• Wastetreatmentensuresthatall
waste meets current regulations and
standards
Distillation
The starting point for all refinery
operations is the crude distillation unit
(CDU). Crude oil is boiled in a distillation
column, which separates the crude down
into fractions with different boiling points.
The crude oil enters the column near the
bottom and is heated to around 380°C.
The lighter fractions are vaporised and
rise up the column. As they rise, they are
cooled by a downward flow of liquid and
condense at different boiling points. This
enables fractions with different boiling
points to be drawn off at different levels
in the column.
These fractions range from lighter, low
boiling point gases such as propane
and butane to heavier, higher boilingpoint diesel and gas oil. They are then
sent on to other refinery units for further
processing. What is left over at the
bottom of the column is a liquid residue,
which requires further processing to
be turned into more valuable, lighter
products or blending components.
This residue is first sent to a second
stage of fractional distillation in the
vacuum distillation unit (VDU). This unit
performs the distillation under reduced
pressure which allows the distillation of
the crude residue at lower temperatures.
CrudeDistillation
UnitCrudeoil
SulphurRecovery
Fuel Gasfor refinery
boilers &furnaces
LPG
Unifiner
Merox
VacuumDistillation
Unit
Isomer
Reformer
Fluid CatalyticCracking Unit
TreatingUnits
Merox
Isomerisation
Unit
AlkylationUnit
GasLiq Petroleum GasPetrol componentsKero componentsDiesel componentsFuel oil components
ImportButane
Sulphur
Hydrotreater
Petrol
Kerosene
Derv/Heating oil
Fuel oils
VisbreakerUnit
Many refineries in the UK came on stream in the 1950s and 1960s. Since that time they have evolved to meet the
growing demand for transport fuels and reducing demand for heating and power generation from oil. The composition
of fuels has also changed over recent years to reduce the environmental impact of their use. In addition to transport
fuels, refineries produce a wide variety of important feedstocks used in the manufacture of other products, such as
petrochemicals, lubricating oils, solvents, bitumen and petroleum coke for aluminium smelting.
No two refineries are identical. They share common technology such as crude distillation, but each UK refinery takes a slightly
different route to achieve the common goal of extracting maximum value from each barrel of crude oil processed.
Typical refinery process units
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Using the same approach as before
the VDU separates into different
components from gas oil to a heavy
liquid residue.
The streams from the CDU and VDU are
then processed further by the remaining
refinery units to provide the high quality
products that consumers expect and
that comply with all relevant legislation.
Conversion, Reforming,Desulphurisation and
Blending of Different
Streams
Distillation does not produce enough
of the lighter, more valuable products
such as petrol that the market wants.
Therefore conversion units eg fluidised
catalytic cracking (FCC) are used to
process some of the streams from the
vacuum distillation column with the aim
of turning the heavy components into
lighter transport fuels. Reforming units are
used to upgrade the octane of the petrol
components produced from the CDU.
Desulphurisation units are then used
to remove sulphur from the products.
This enables the products to meet
today’s tighter fuel specifications. Extra
desulphurisation will be required to
allow the refinery additional flexibility to
process higher sulphur ‘sourer’ crude
oils. Reliance on low sulphur crude oils
alone limits the flexibility of a refinery.
Main Products
LPG (liquified petroleum gas) is taken
directly from the crude distillation unit
and the FCC unit.
Petrol streams from the distillation
process are cleaned in the unifiner.
This unit strips out excess sulphur
and nitrogen compounds as hydrogen
sulphide and ammonia.
The streams are then sent on to the
catalytic reformer and isomer units for
processing to raise the octane number
of the petrol by modifying its molecular
structure. The reformer produces
a large amount of hydrogen as a
by-product, and this is recycled for use
in desulphurisation (hydrotreater) units.
Finally the petrol streams from the
reformer, fluidised catalytic cracking
unit, the isomerisation unit and the
alkylation unit are blended to meet fuel
specifications and current regulations.
Jet fuel/kerosene streams from
distillation are cleaned in the merox unit.
This uses a caustic wash and additives
to remove sulphur compounds and to
inhibit gum formation.
Diesel/heating oil streams are
processed in the hydrotreater, which
removes sulphur and other unwanted
compounds using hydrogen and a
catalyst. The hydrotreater (desulphuriser)
is supplied with recycled hydrogen
from other process units such as the
reformer. The diesel/heating oil streams
are separately blended to meet fuel
specifications and current regulations.
The lighter fuel oil streams from the
VDU are processed in the FCC unit
whilst the heavier residues from the VDU
can be processed in the visbreaker.
In the FCC unit, heavy oils are reacted at
high temperature with a catalyst which
breaks the heavy fractions into more
valuable lighter products. The LPG and
petrol components are then cleaned in
a merox unit and some of the LPG is
converted in an isomerisation or alkylation
unit into high octane petrol blending
components. The FCC’s products are
blended into petrol, LPG, diesel/gas oil
and fuel oil product streams.
In the visbreaker, the heavy fractions
are held at high temperature until they
become less viscous. This stream is
then blended into other fuel oil product
streams.
The fuel oil components from the
different units are then blended to give
fuel oil meeting current regulations and
specifications.
Desulphurisation and
Waste Treatment
The sulphur recovery unit takes waste
hydrogen sulphide from the units which
remove sulphur from product streams.
The hydrogen sulphide is then reacted
with oxygen to give solid elemental
sulphur and water vapour. After
treatment, this sulphur is sold to other
process industries.
All other waste streams are treated
according to the current regulations.
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The members of UKPIA run the eight major operating refineries in the UK, which are situated around the coast for ease of
crude tanker access. They supply over 90% of the inland market demand for petroleum products. The UK has the fourth
largest total refining capacity in the EU and some UK refineries are among the largest in Europe.
Over many years, the refining sector has sought to minimise its impacts upon the environment and improvements continue
to be made to reduce emissions.
Section 2 covers refining in more detail, with key figures on production, changing product demand and refinery emissions.
Distribution of Products
Around 50 major oil terminals are supplied by pipeline (51% of the volume), rail (15%) and sea (34%) from UK refineries. There is an
extensive network of private and Government owned pipelines in the UK, with around 3,000 miles of pipeline currently in use.
The 1500 miles of privately owned UK pipeline network carries a variety of oil products, from road transport fuels to heating oil and
aviation fuel. It provides an efficient and robust distribution system across the UK and directly provides jet fuel for some of the UK’s
main airports. It can take several days for fuel to travel from the refinery to the terminal by pipeline. At the terminal, products are
stored in large above-ground tanks and are transported to the filling station by road tankers.
The Government also has an oil pipeline system which is largely designed to meet the needs of military airfields.
INEOS Grangemouth
Petroplus Teesside(in economic shutdown)
ConocoPhillips Humber
Total Lindsey
Petroplus Coryton
ExxonMobil Fawley
Chevron Pembroke
Murco Milford Haven
Shell Stanlow
Refineries in the UK
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U.K.O.P.
Shell
BP
Chevron
Total
ESSO PIPELINE SYSTEM
MAINLINE PIPELINE SYSTEM
Esso
Chevron
Total
Shell
WALTON GATWICK PIPELINE
BP
Shell
Chevron
WEST LONDON PIPELINE
BP
Shell
Chevron
Total
FINA-LINE
PEMBROKE AND
MILFORD HAVEN
PURFLEETGATWICK
HUMBER AND LINDSEY
STANLOW
NOTTINGHAM
KINGSBURY
BIRMINGHAM
BUNCEFIELD CORYTON/THAMES
AVONMOUTH
HEATHROW
FAWLEY
WEST LONDON
MANCHESTER
NORTHAMPTON
INGRESS LOCATIONS:
KILLINGHOLME
(Total, Conoco, BP)
BACKFORD
(Shell)
AVONMOUTH
HAMBLE
(BP, Esso)
ISLE OF GRAIN
(BP, BA)
THAMES HAVEN
(BP, Shell, O.I.K.O.S.) WALTON AVONMOUTH
HAMBLE
RAWCLIFFE
BLACKMOOR
BRAMHALLBACKFORD
HETHERSETT
CLAYDON
ISLE OF GRAIN
SANDY
STANSTED
PURTON
THAMES
HAVEN
KILLINGHOLME
MISTERTON
SAFFRON
WALDEN
ALDERMASTON
HALLEN
Government oil pipelines in England and Wales
Privately owned oil pipelines in England and Wales
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5 Year Average Return on Capital Employed
0
10
20
30
UKPIA Manufacturing Services Upstream Oil
Production
R O C E ( % )
Contribution to Balance of Payments
-1000
0
1000
2000
1992 1994 1996 1998 2000 2002 2004 2006 2008
C o n t r i b u t i o n ( £ m )
Duty from Road Fuels
0
5
10
15
20
25
30
9 3/ 94 9 5/ 96 9 7/ 98 9 9/ 00 0 1/ 02 0 3/ 04 0 5/ 06 0 7/ 08 0 9/ 10
(p)
D u t y ( £ b n )
1. Economic Contribution and Refinery Economics
1.1 Contribution to
Balance of Payments
1.2 Duty from Road Fuels
• Oilrefininghashistoricallybeenamajorcontributor
to the UK’s balance of payments
• However,thegrowingdemandfordieselandjetfuel, and the falling demand for petrol, has resulted in the
UK becoming increasingly reliant on large-scale
imports of diesel and jet fuel
• Oilproductswillremaincentraltothenation’senergyneeds for decades to come, but increasingly alternative
fuels will play a more important role
The oil refining and marketing industry plays an important
role in the UK’s economy, supplying over 33% of the
primary energy used in the UK from a secure supply
base. Around 130 million litres of petrol and diesel
are sold in the UK each day to an estimated 4 million
customers. Our industry collects over £30 billion in fuel
duty and VAT each year, and employs over 150,000 people
at refineries, head offices, forecourts and as contractors.
Source: DECC Source: HM Treasury/HMRC
Source:UKPIA/Office for National Statistics
• The2009Budgetestimatedfueldutyreceiptsfor
2009/10 are £26.2 billion. In addition, around £6.9billion was collected as VAT on road fuels
• Thiscombinedfigureiscomparabletoarounda fifth of UK’s annual expenditure on road transport
• Theaveragereturnoncapitalemployedfor1999-2008 in the downstream oil industry
was 11.6%
• Overthesametimeperiod,manufacturingindustries’ ROCE was 9.45% on average,
and that of service industries was 16.4%
• Serviceindustriesincludecommunications,hotels, catering, distribution, transport and
storage.
1.3 Average Return on Capital Employed
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Gross Sales
0
20
40
60
80
100
120
1993 1996 1999 2002 2005 2008
S a l e s ( £ b n )
UKPIA Refinery Share of Inland Consumption
82
84
86
88
90
92
94
1993 1996 1999 2002 2005 2008
%
s h a r e o f i n l a n d c o n s u m p t i o n
1.6 UKPIA Refinery Share
of Inland Consumption1.7 Regional Refining
Margins
1.4 Gross Sales
Refining and Marketing Employment
0
5000
10000
15000
20000
25000
1993 1996 1999 2002 2005 2008
E m p l o y e e s
1.5 Refining and MarketingEmployment
Source: UKPIA Source: UKPIA
Source: UKPIA Source: BP Statistical Review of World Energy 2009/ BP Trading Conditions Update
• In2008,grosssalesbyUKPIAmembercompaniesin the UK were, including duty, £99 billion
• Thisisaconsiderableincreaseonthepreviousyears’sales, reflecting that year’s record crude oil prices,
which lead to higher product prices
• In2008,almost90%ofinlandoilconsumptionintheUK was supplied by UKPIA member companies
• Thisprovidedvitalenergyresilienceandsecurityofsupply to the nation
• UKrefineriesalsoexportproductsprimarilytoEurope and America
• Refiningisahighlycyclicalbusinesswithlowmarginsoccurring in 1999 and 2002
• EuropeanandAsianrefinerymarginshavebeensignificantly lower than those achieved by refineries
on the US Gulf Coast
• 2009witnessedaverylowmarginofaround$0.2per barrel in Singapore, and an overall significant
drop in margin in other regions reflecting in part
weaker oil demand due to the recession
Regional Refining Margins
0
5
10
15
1992 1996 2000 2004 2008
M a r g i n $ / b b l
NW Europe Singapore US Gulf Coast
• Therefiningandmarketingindustryisamajoremployer in the UK, with over 16,000 people directly
employed by UKPIA members
• Inaddition,over150,000peopleareemployedinother roles, such as service station staff, contractors
and road tanker drivers
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NWE Refining Margins Brent Crude (at 2000 prices)
0
1
2
3
4
2001 2003 2005 2007 2009
M a r g i n $ / b b l
1.8 NWE Refining Margins
Crude and Ex-Refinery Prices 2009
0
5
10
15
20
25
30
35
40
Jan Feb Mar Apr May Jun Ju l Aug Sep Oc t Nov Dec
P e n c e
p e r l i t r e
Petrol Diesel Crude Oil
1.9 Crude and Ex-Refinery Prices
Source: Wood Mackenzie Source: Wood Mackenzie/OPAL
• TheunderlyingtrendforEuropeanrefiningmarginssince2000hasbeenaround$2perbarrelinconstantmoney, after adjusting for RPI, but in 2009 dropped
significantlytobelow$1perbarrel
• Refiningmarginisthedifferencebetweencostof crude purchased and value of product sales
and needs to cover fixed costs of operators and
maintenance, and return on capital
• Wholesaleex-refinerypricestrackedcrudecloselythroughout 2009
• Crudeoilhasbeenthemaindriverforpricesofrefinedproducts such as petrol and diesel and reflected in
pump prices in the UK and globally
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INEOS Grangemouth
Petroplus Teesside(in economic shutdown)
ConocoPhillips Humber
Total Lindsey
Petroplus Coryton
ExxonMobil Fawley
Chevron Pembroke
Murco Milford Haven
Shell Stanlow
2. Refineries
2.1 UK Refineries
There are now eight major crude oil refineries operating
in the UK, situated around the coast for ease of crude
tanker access. Onwards distribution is achieved via
an extensive pipeline system plus road, rail and sea
transport. The UK has the fourth largest total refining
capacity in the EU, despite refinery closures in 1997,
1999 and 2009, and some UK refineries are among the
largest in Europe.
Over many years the refining sector has sought
to minimise its impacts upon the environment and
improvements continue to be made to reduce emissions.
Number of Operating UKPIA Refineries
0
2
4
6
8
10
12
14
16
18
20
1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009
N u m b e r o f m a j o r r e f i n e r i e s
2.2 Number of Refineries
European Capacity 1996 / 2008
500
1000
1500
2000
2500
3000
Germany Italy France UK Spain Neth Belgium
T h o u s a n d
b a r r e l s
p e r d a y
1 99 6 2 00 8
2.3 European Capacity
Source: UKPIA
BP Statistical Review of World Energy 2009
Source: UKPIA
• Thereareeightmajorcrudeoilrefineriesoperatingin
the UK which supply the bulk (little under 90%) of theinland market demand for petroleum products
• Therefineriesaresituatedaroundthecoastandmostare connected to pipelines for product distribution
• Threerefinerieshavebeensoldinrecentyears:Grangemouth Refinery was sold to Ineos in 2005,
Coryton Refinery was sold to Petroplus in 2007, and
TotalsoldtheirshareofMilfordHaventoMurcoin2007
• In2009thePetroplusTeessiderefinerywasplacedineconomic shutdown and is currently operating as an
import terminal
• ThenumberofmajoroilrefineriesintheUKhas
fallen from a high of 19 in 1975 to 8 currently inoperation
• Thereareanothertwosmallerspecialityrefineries in the UK producing bitumen and
other products
• Thereare98mainstreamrefineriesintheEU
• In2008theUKhadthefourthlargest refining capacity in Western
Europe at over 1.8 million barrels
per day
• 1996wasUK’slastyearholdingthe position of third largest refining
capacity; refinery closures in the UK
and expansion in France reversed
their positions
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Destination of Oil Products 2009
Exports
Domesticdeliveries
2.7 Destination of
Oil Products
Refinery Throughput
-
20
40
60
80
100
120
140
1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p
T h r o u g h p u t ( m i l l i o n t o n n e s )
2.4 Refinery Throughput 2.5 Refinery Energy Efficiency
Sources of Crude Oil 2008
Others
Africa
Russia
UK
Middle East
Norway
2.6 Sources of Crude Oil
Source: DECC (DUKES) Source: DECC (DUKES)
Source: DECC (DUKES) Source: DECC (DUKES)
Refinery Energy Efficiency
0
1
2
3
4
5
6
7
8
1973 1979 1985 1991 1997 2003 2009p
F u e l u s e d a s % o
f t h r o u g h p u t
• Sincetherefineryclosuresof1997and1999,UKrefinery throughput has fallen from its recent peak of
97 million tonnes of crude oil
• UKrefinerythroughputwas75milliontonnesin2009
• Throughputdependsprimarilyonproductdemandand capacity
• Refineriesusetheequivalentofbetween5and6%ofthroughput as fuel, to provide energy to refine crude
oil into products for consumers
• Moreenergyisrequiredtomeetthecurrenthighdemand for cleaner transport fuels and to meet
challenging environmental standards, but this has
been offset by improved energy efficiency at refineries
• Slightlyunder80%ofUKrefinerycrudethroughputisfrom the North Sea (UK and Norway)
• Currently,around8%ofcrudeoilprocessedatUKrefineries arrives from Russia and the Middle East,
and a little over 10% from Africa
• Arangeofsourcesofcrudeoilprovidesasecuresupply of energy
• ThisisimportantascrudeoutputfromtheUKNorth
Sea will decline over the coming decade
• ThemajorityofoilproductsprocessedatUKrefineries are consumed in the UK
– approximately 66%
• TheEUisthemaindestinationforUKoilproductexports, although the US is also an important export
area, particularly for excess petrol
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Products Produced 2009
0
10
20
30
Petrol Gas
Oil/Diesel
Jet Fuel Fuel Oil Petroleum
Gases
Burning Oil Others
P r o d u c t i o n ( m i l l i o n t o n n e s )
2.8 Product Produced
Product Demand 2009
0
10
20
30
Petrol Gas
Oil/Diesel
Jet Fuel Fuel Oil Petroleum
Gases
Burning Oil Others
D e m a n d ( m i l l i o n t o n n e s )
2.9 Product Demand
Changes in Refinery Production
0
20
40
60
80
100
1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p
U K p r o d u c t i o n ( m i l l i o n t o n n e s / a n n u m )
Fuel Oil Gas Oil/Diesel Jet Petrol
2.10 Changes in Refinery
Production
Changes in Product Demand
0
20
40
60
80
100
1969 1973 1977 1981 1985 1989 1993 1997 2001 2005 2009p
U K s
a l e s ( m i l l i o n t o n n e s / a n n u m ) Fuel Oil Gas Oil/Diesel Jet Petrol
2.11 Changes in Product
Demand
Source: DECC (DUKES - provisional data) Source: DECC (DUKES - provisional data)
Source: DECC (DUKES) Source: DECC (DUKES)
• UKrefineriesareconfiguredtomeethistorichigherdemand for petrol and fuel oil
• Asaresultofreducingdemand,refineriesnowproducean excess of these products and are in deficit in others
such as jet fuel and diesel
• Alteringrefineryproductiontomeetchangingdemandwill require major investment
• SeeUKPIA’spaper“Meeting our Energy Needs:
The Future of UK Oil Refining” for more information
• Themajorityofoilproductdemandcomesfromthetransport sector
• UKrefinerieshavebeenunabletoproduceenough jet fuel or diesel, consequently these are increasingly
imported to meet demand
• Themajorchangeinrefineryproductionoverthelastforty years has been a significant reduction in the
quantity of fuel oil produced
• Theincreaseingasoil/dieselandpetrolseeninthe80s and 90s has since levelled off
• Overthesameperiodsomeofthesurplusfueloilhas been converted into petrol and gas oil/diesel or
exported
• Themajorchangeinproductdemandsince1979has been the decline of fuel oil demand and the
growth of transport fuels
• Since1990demandforpetrolhasfallenbyover30% and gas oil/diesel and jet combined have
increased by over 50%
• Naturalgashaslargelyreplacedfueloilforpowergeneration and gas oil for space heating
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Downstream VOC Emissions
0
50
100
150
200
250
1972 1976 1980 1984 1988 1992 1996 2000 2004 2008
E m i s s i o n s ( k t o n n e s )
Refining/Storage VOC Emissions Distribution of oil products VOC emissions
2.15 Downstream VOC
Emissions
Refinery CO2 Emissions
0
5
10
15
20
25
30
1972 197 6 1980 1984 1988 1992 1996 2000 2004 2008
E m i s s i o n s ( m i l l i o n t o n n e s )
2.12 Refinery CO2 Emissions
Refinery SO2 Emissions
0
60
120
180
240
197 2 19 76 198 0 198 4 19 88 199 2 199 6 20 00 200 4 200 8
E m i s s i o n s ( k t o n n e s )
2.13 Refinery SO2 Emissions
Refinery NOx Emissions
0
10
20
30
40
50
197 2 19 76 19 80 19 84 19 88 19 92 1 99 6 20 00 20 04 2 00 8
E
m i s s i o n s ( k t o n n e s )
2.14 Refinery NO X
Emissions
Source: DECC (GHG Emissions) Source: AEA Energy & Environment
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
• Refineriesemitunder3%oftheUK’sCO2 emissions
and are included in the EU Emissions Trading Scheme
• Althoughittakesmoreenergytosupplyanincreaseddemand for transport fuels, particularly low sulphur
fuels, refinery CO2 emissions have fallen since 1970
as a result of improved energy efficiency and refinery
closures
• RefineriesreleaseSO2 when sulphur, naturally present
in crude oil, is burnt
• RefinerySO2 emissions have fallen by 60% since
1970, to around 72,000 tonnes in 2008
• Thisisduetoinvestmenttoincreasesulphurrecoveryatrefineries and the use of low sulphur North Sea crude oil
• Althoughtherehasbeenanincreaseinrecentyears due to the use of higher sulphur crude oils, further
reductions are planned
• NOxisformedasaresultofthecombustionoffossil fuels, and hence is produced at refineries
• RefineryNOxemissionshavefallenbyoverathirdsince 1990 to under 25,000 tonnes
• Thisisduetotheinstallationofabatementtechnology at refineries
• Volatileorganiccompoundsareproducedinthedownstream oil industry from the evaporation of oil
products
• Since1990,refineryandstorageemissionshavefallenby 70%, to 29,000 tonnes due to leak detection and
repair programmes
• Additionalreductionsinthedownstreamindustryaredue to the introduction of vapour recovery equipment
at storage facilities, on petrol deliveries and at many of the higher throughput filling stations
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Demand for Road Travel
0
100
200
300
400
500
600
700
1 95 0 1 96 0 1 97 0 1 98 0 1 99 0 2 00 0 2 01 0 2 01 5 2 02 5
B i l l i o n k m d
r i v e n
3. Road Transport Fuels
3.1 Demand for Road Travel
Demand for road transport has increased significantly
over the last 50 years and is currently projected to
continue to grow in the future. Over recent years the
quality of road fuels has improved with the complete
removal of lead, the virtual removal of fuel sulphur
and lower aromatics levels. These improvements have
reduced atmospheric emissions of pollutants, but more
importantly have enabled new technologies which
improve the efficiency of the vehicles and reduce the
environmental impact of road transport.
Total Road Fuel Sales
Petrol
Diesel
0
10
20
30
40
50
60
1973 1979 1985 1991 1997 2003 2009p
T o t a l s a l e s
( b i l l i o n
l i t r e s )
3.2 Road Fuels Sales
Petrol Sales
0
5
10
15
20
25
30
35
1973 1979 1985 1991 1997 2003 2009p
T o t a l s a l e s
( b i l l i o n
l i t r e s )
• Salesofpetrolhavebeenfallingsince reaching a peak of 33
billion litres in 1990 and in 2009
represented around 47% of road
transport demand by litres sold
• Salesofpetrolwere22billionlitresin 2009
3.3 Petrol Sales
Source: DfT (“DfT Road Traffic Forecast 2008”) Source: DECC
Source: DECC
• Roadtransportdemandhasbeenonanupwardtrend for decades, and despite a flattening in
growth during the recession, demand is forecast to
increase in future
• By2025demandispredictedtohavegrownbyalmost 60% from 1990 levels, although at a slightly
lower rate than past decades
• Whilsttotalroadfuelsaleshaveshownalongterm increase since 1970, they dropped slightly
in both 2008 and 2009 due to a combination of
higher prices driven by the cost of crude oil and the
economic recession
• Outoftotalsales,theshareofpetrolhasbeenfalling, whilst that of diesel has been rising due to
an increased proportion of diesel vehicles
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Sales of LPG for Transport
0
50
100
150
200
250
300
1 99 9 2 00 0 2 00 1 2 00 2 2 00 3 2 00 4 2 00 5 2 00 6 2 00 7 2 00 8 2 00 9
T o t a l s a l e s ( m i l l i o n l i t r e s )
3.7 Sales of LPG for
Transport
Diesel Sales
0
5
10
15
20
25
30
1973 1979 1985 1991 1997 2003 2009p
T o t a l s a l e s
( b i l l i o n
l i t r e s )
3.4 Diesel Sales
Max. Sulphur in Diesel
0
1000
2000
3000
4000
1990 1995 2000 2005
P a r t s p
e r m i l l i o n s u l p h u r ( p p m )
Legal Limit UK Actual
3.6 EU Max. Sulphur
in Diesel
Source: BSI/UKPIA Source: HM Revenue and Customs
Source: DECC
Max. Sulphur in Petrol
0
500
1000
1500
2000
2500
1990 1995 2000 2005
P a r t s p e r m i l l i o n s u l p h u r ( p p m )
Legal Limit UK Actual
3.5 Maximum Sulphur in Petrol
Source: BSI/UKPIA
• Salesofdieselhavebeensteadilyincreasingforthe last twenty years reaching over 24 billion litres, and
in 2009 represented around 53% of road transport
demand by volume
• Thisistheresultoftheincreasedpopularityofdieselvehicles due to their high efficiencies, perceived lower
running costs, and increased demand from commercial
vehicles
• However,dieselsalesfellslightlyandcontinuedtostagnate into 2009 due to high diesel prices and the
economic situation
• Thelevelofsulphurinroadfuelsislimitedbylawto ensure sulphur emissions are reduced and to
enable new vehicle technologies
• FromJanuary2009,allUKpetrolwas“sulphurfree”, containing less than 10 parts per million
sulphur
• Thelevelofsulphurindieselisalsolimitedbylaw
• AlldieselintheUKbecame“sulphurfree”byJanuary2009(below10ppm)
• Aswellaspetrolanddiesel,liquefiedpetroleumgas(LPG) is used as a road fuel in the UK
• SalesofLPGroserapidlybetween2000and2006based upon a favourable duty incentive and favourable
treatment under the London Congestion Charge
• However,thegradualreductioninthedutydifferentialbetween LPG and alternative fuels since has impacted
on the sales of LPG/petrol cars, which in turn has
affected sales of LPG, lowering sales to 212 million litres
down from its 2006 peak of almost 250 million litres
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4. Biofuels
4.1 RTFO Targets
Biofuels have the potential to reduce UK emissions of
carbon dioxide from road transport. The main biofuels
available today are bioethanol and biodiesel, and
standards currently permit these fuels to be blended up
to 5% by volume with petrol and 7% with diesel.
The introduction of biofuels into road transport fuels is
the single biggest change to road fuels for decades.
The downstream oil industry is working hard to
ensure that the Government’s targets are met under
the Renewable Transport Fuels Obligation (RTFO)
and that fuel quality standards are maintained. Key
considerations are the amount of carbon saved by
different biofuels, the sustainability of the source
material, food crop production and the carbon balance
associated with land use change.
4.2 UK Bioethanol
Consumption
UK Biodiesel Consumption
0
200
400
600
800
1000
1200
0 1/ 02 0 2/ 03 0 3/ 04 0 4/ 05 0 5/ 06 0 6/ 07 0 7/ 08 0 8/ 09 0 9/ 10
M i l l i o n l i t r e s
4.3 UK Biodiesel Consumption
Source: HMT Source: HMRC *(provisional data covering period April 2009 to March 2010)
RTFO Targets
0%
2%
4%
6%
07/08 08/09 09/10 10/11 11/12 12/13 13/14
% v
o l u m e b i o f u e l i n r o a d f u e l s
UK Bioethanol Consumption
0
40
80
120
160
200
240
280
320
360
400
440
480
0 1/ 02 0 2/ 03 0 3/ 04 0 4/ 05 0 5/ 06 0 6/ 07 0 7/ 08 0 8/ 09 0 9/ 10
M i l l i o n l i t r e s
• BetweenJuly2002andMarch2010, the Government introduced a
20 ppl duty reduction on biodiesel
• In2009/10,UKbiodieselconsumption was 1068* million litres
• Thisrepresentsover4%ofdieselsales by volume
• Thedutydifferentialof20pencewas removed in 2010, with the buy
out price set by the Government at
30 ppl
• TheRTFOwasintroducedinApril2008,withanoriginal target of 5% biofuel content in road fuels
by 2010/11
• However,thiswasrevisedduetosustainabilityconcerns and the targets for the biofuel content of
road fuels are now 3.5% by 2010/11, rising to 5%
by 2013/14
• Atthe5%levelitisestimatedthatupto3milliontonnes of carbon dioxide would be avoided
• BetweenJanuary2005andMarch2010,theGovernment introduced a 20 pence per litre duty
reduction on bioethanol
• In2009/10,UKbioethanolconsumptionstoodat430* million litres, which represents around 2% of
all petrol sales by volume
• Thedutydifferentialof20pencewasremovedin2010, with the buy out price set by the Government
at 30 ppl
Source: HMRC *(provisional data covering period April 2009 to March 2010)
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UK Progress towards the RTFO Targets
0%
1%
2%
3%
4%
Jan Apr Jul Oct Jan Apr Jul Oct Jan
% v
o l u m e b i o f u e l s i n r o a d f u e l s
Bioethanol Biodiesel
2008 2009 2010
4.4 UK Progress towardsRTFO Targets
Source: HMRC/RFA
• TheUKadded2.6%ofbiofuelsduringthefirstyearofthe RTFO (2008/09), exceeding the target of 2.5%
• Inthe2nd year of the RTFO (2009/10), the current
provisional data indicates the UK is close to meeting
the target of 3.25% of biofuels
• For2010/2011,thetargetis3.5%
Sources of Biofuels by Country
Brazil 19%
Argentina 19%
Denmark 2%
Unknown 14%
Indonesia 2%
Malaysia 5%
Germany 8%
Other 3%
France 4%
UK 10%
USA 14%
4.6 Sources of Biofuels Used in the UK
• Roughly10%ofbiofuelsusedareproducedintheUK;the remainder is imported
NB: ‘Other’ includes Belgium, Canada, Hungary, Ireland, Italy, Latvia,
Netherlands, Pakistan, Poland, Sweden, Switzerland & Ukraine
Source: RFA (covering period April 09 – Jan 10)
Duty Differentials and Buy Out for Biofuels
0
10
20
30
40
02/03 03/04 04/05 05/06 06/07 07/08 08/09 09/10 10/11
P e n c e
p e r l i t r e
Duty Differential Buy Out
4.5 Duty and Buy Outfor Biofuels
Source: HMT/ RFA
• Adutydifferentialof20penceperlitrehasbeeninplacefor biodiesel since 2002 and for bioethanol since 2005
• Inaddition,a‘buyout’pricefortheRTFOwasintroduced at 15 ppl in 2008/09, giving a combined
incentive of 35 ppl
• Thebuyoutpriceeffectivelyactsasasafetyvalvefor the fuel supplier if the bio component is not added
to the final blend
• Thedutydifferentialwasremovedin2010,withthe buy out price set by the Government at 30 ppl
Sources of Biofuels by Crop
Palm 8%
Sugar Cane 19%
Sugar Beet 4%
Oilseed 14%
UCO 3%
Unknown 7%
Other 1%
Tallow 14%
Wheat 1%
Soy 29%
• Ethanolismostlysourcedfromsugarcane
• Biodieselismostlysourcedfromsoyandrape
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5. Other Products
5.1 Refining Production
A wide range of products are produced from crude oil,
ranging from transport and domestic/industrial fuels to
chemical feedstocks. Over time, refinery configurations
have developed to increase the quantities of high value
transport fuels that can be produced. In contrast,
domestic/industrial demand for other fuels has altered
markedly over the last twenty years as sales of fuel oil
and gas oil have reduced, being displaced in power
generation and industrial applications by natural gas.
5.2 Fuel Oil Deliveries
5.3 Inland Gas Oil Deliveries
Source: DECC *(excludes refinery use and losses) Source: DECC
Inland Fuel Oil Deliveries
0
10
20
30
40
50
1973 1979 1985 1991 1997 2003 2009p
D e l i v e r i e s ( m i l l i o n t o n n e s )
Inland Gas Oil Deliveries
0
2
4
6
8
10
12
14
16
1973 1979 1985 1991 1997 2003 2009p
D e l i v e r i e s ( m i l l i o n t o n n e s )
• TheUKdemandforgasoilhasfallen since 1970
• Gasoilisproducedfromasimilarfraction of crude oil as diesel
• Thereductionindemandismainlydue to fuel switching to natural gas
• RefineriesproduceNaphtha,LPG,roadfuels,
kerosene, jet fuel, heating oil, gas oil, fuel oil,bitumen and other products such as chemical
feedstocks
• Thecurrenttrendofproductionisawayfromheatingfuels (fuel and gas oils) and towards transport fuels
(petrol, diesel and jet fuel)
• Refinerieswillrequiremajorinvestmenttomeettheincreased demand for diesel and jet fuel
• Thedemandforfueloilhasreducedsignificantly
since 1970, rising only briefly in 1984 due to theminers’ strike
• Thereductionindemandismainlyduetofuelswitching to natural gas by electricity generators
• Productspecificationchangesformarinefuelsandotheroffroaddiesel/gasoilfuelsfromJanuary2011,moving them to a lower sulphur content, will impact
middle distillate capacity
Source: DECC
Refining Production in 2009*
Petrol
LPG
JetandKerosene
Fuel Oil
Diesel
and Gas
Oil
Bitumen
Naphtha
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5.7 Lube Oil Deliveries
5.4 Kerosene Deliveries
5.6 Bitumen Deliveries
Source: DECC
• Kerosene(alsocalledburningoil)isusedasfuelfor domestic and industrial heating, and sales are
typically higher during winter
• Inlandsalesofkerosenehaveincreasedsince1980
• NewlegislationintroducedinJanuary2008restrictedthe sulphur levels in kerosene to 0.1%
Source: DECC
Inland Aviation Fuel Deliveries
0
3
6
9
12
15
1 97 3 1 97 7 1 98 1 1 98 5 1 98 9 1 99 3 1 99 7 2 00 1 2 00 5 2 00 9p
D e l i v e r i e s ( m i l l i o n t o n n e s )
5.5 Aviation Fuel Deliveries
• Aviationturbinekeroseneisusedinjetengines
• SalesofAVTURhavebeengrowingsteadilysince1970, and growth is projected to continue
• Aviationfueldemandhasfalleninthelasttwoyearsdue to reduced passenger numbers and cargo
volumes experienced during the recession
Source: DECC
Inland Kerosene Deliveries
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
1973 1979 1985 1991 1997 2003 2009p
D e l i v e r i e s ( m i l l i o n t o n n e s )
Inland Bitumen Deliveries
0
0.5
1
1.5
2
2.5
3
1973 1979 1985 1991 1997 2003 2009p
D e l i v e r i e s ( m i l l i o n t o n n e s )
Inland Lube Oil Deliveries
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1973 1979 1985 1991 1997 2003 2009p
D e l i v e r i e s ( m i l l i o n t o n n e s )
• Demandforbitumenhasdeclinedtojustover1.3million tonnes/pa
• Bitumenisproducedfromsomeoftheheaviestfractions of crude oil and is mainly used for road
surfacing and roofing
• Salesoflubesandgreaseshavefallensince1970toaround 0.5 million tonnes/pa
• Improvedenginesrequirefeweroilchangesandtheuse of synthetic lubricating oils has also contributed
to this reduction
• Theintroductionofbiodieselcouldseeoildrainintervals reducing and demand for lubes increasing
5
Ot h erP rod uct s
Source: DECC
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Average Contribution to Pump Price 2009
Ex-Refinery
Price
27%
Retail /
Ex-refinery
Price Spread
5%
Duty / VAT
67%
6. Petrol Prices
6.1 Petrol Pump Price
As a result of the UK’s competitive road fuels retail
market and efficient distribution facilities, the pre-
tax price of major brand petrol in the UK has been
consistently amongst the lowest in Europe. However,
despite this competition, the price paid by consumers at
the pump has been one of the highest in Europe, due to
the higher levels of duty applied by the Government
(VAT and duty combined represent around 67% of the
average pump price in 2009).
Following the 2008 price spike, average annual petrol
prices dropped in 2009 quite significantly. Despite this
reduction, the price in real terms still remains higher
than in 2007.
6.2 Average Contribution
to Pump Price
6.3 European Prices
Source: Wood Mackenzie/OPAL *The price of petrol in figure 6.1 is in money of the day Source: Wood Mackenzie/OPAL
UK Petrol Pump Price Breakdown
Pre-tax
Duty/VAT
0
20
40
60
80
100
120
1989 1993 1997 2001 2005 2009
P e n c e
p e r l i t r e
Pump Prices of Unleaded Petrol 2009
0
20
40
60
80
100
120
UK Ger Spain France Neth Italy Bel Lux
P e n c e
p e r l i t r e
E xc l D ut y & VAT D ut y & VAT
• In2009theUKpre-taxpriceofmajor brands of unleaded petrol
was again the lowest in Europe at
32.5 ppl
• ThepricepaidatthepumpbyUK consumers was, however,
considerably higher due to the
levels of fuel duty
• Petrolpricesfellin2009followingthepreviousyearsunprecedented price increase
• Theaverageannualpre-taxpriceofpetrolroseoverthe last few years after a long period of relative consistency,
and continued to do so in 2009 when compared to
2007 and previous years, with the exception of 2008
• Thisincreasereflectedthegeneralriseincrudeoil prices, resulting from increased global demand
• TheincreasesindutyinDecember2006,October 2007, December 2008 and April 2009 also
contributed to the rise in pump prices
• DutyandVATarethemaincomponentsofthepumpprice of petrol in the UK, making up over two thirds
of the total
• From1st April 2009 duty went up from 52.35p to
54.19p and again in October to 56.2p on a litre of
unleaded petrol
• VATischargedonboththecostoffuelandduty. It was temporarily cut from 17.5% to 15% on 1st
December 2008 to 1stJanuary2010
• Theaverageretail/ex-refinerypricespreadfor2009was a little over 5 ppl
Source: Wood Mackenzie/OPAL
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6.4 Pre-Tax Petrol andCrude Prices
• Thepre-taxpriceofpetrolhasgenerallyreflectedthecost of crude oil
• Theeffectofcrudepricesonthefinalpumppricehasbeen lessened by the high levels of fuel duty
• The£/$exchangehasbeenakeyfactorindetermining fuel prices
Source: Wood Mackenzie/OPAL
Fuel Price and Tax Comparison
0
50
100
150
200
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
1 9 9 0
=
1 0 0
Duty & VAT
Pre Tax Price
6.5 Fuel Price & TaxComparison
• Thepre-taxpriceofpetrolonlyrecentlyincreasedrelative to 1990 levels, having remained below RPI
adjusted 1990 prices until 2005
• DutyandVATsteadilyincreasedrelativeto1990levelsthroughout the 90s, until they were effectively frozen
following protests in September 2000
• Theyhaverecentlyrisenagain,andcontinuetoshowa greater increase over the past 18 years than the
pre-tax price
Source: Wood Mackenzie/ONS
Pre-Tax Petrol and Crude Prices
0
10
20
30
40
50
1 98 9 1 99 1 1 99 3 1 99 5 1 99 7 1 99 9 2 00 1 2 00 3 2 00 5 2 00 7 2 00 9
P e n c e
p e r l i t r e
Petrol Price
Crude Oil Price
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Average Contribution to Pump Prices 2009
Duty/VAT 65%
Retail/ Ex-
Refinery Price
Spread 6%
Ex-Refinery
Price 29%
7. Diesel Prices
7.1 Diesel Pump Price
• Dieselpricesfellin2009followingthepreviousyear’s
unprecedented price increase
• Theaverageannualpre-taxpriceofdieselroseover
the last few years after a long period of relative consistency,
and continued to do so when compared to 2007, with the
exception of 2008
• Thisincreasereflectedrisingcrudeoilprices,resulting
from increased global demand
• TheincreasesindutyinDecember2006,October2007,
December 2008 and April 2009 also contributed to the
rise in pump prices
The UK road fuels retail market is highly competitive
and distribution facilities are efficient; consequently, the
pre-tax price of major brand diesel in the UK has been
consistently amongst the lowest in Europe. Despite this
competition, the price consumers pay at the pump in
the UK has been the highest in Europe, due to the much
higher level of duty applied to diesel in the UK.
Following the 2008 price spike, average annual
diesel prices dropped in 2009 quite significantly. Despite
this reduction, the price in real terms still remains higher
than in 2007.
7.2 Average Contribution
to Pump Price
• In2009dutyandVATmadeupalmosttwothirdsofthe pump price of diesel in the UK
• Theaverageretail/ex-refinerypricespreadfor2009was a little over 6 ppl
• Fromthistheoilcompanyandretailermustcoverallsite, distribution and storage expenses
Pre-Tax Pump Prices of Diesel 2009
33
34
35
36
37
38
39
40
41
42
UK Ger Spain I reland France Neth Lux Italy Bel
P e n c e
p e r l i t r e
• 2009sawtheUKonceagainhave the lowest major brand pre-
tax diesel price in the EU
• ThelowUKpre-taxpriceisaresult of strong competition
amongst retailers and an efficient
fuel distribution network
7.3 European Pre-Tax Pump Prices
Source: Wood Mackenzie/OPAL
Source: Wood Mackenzie/OPAL
UK Diesel Pump Price Breakdown
Duty & VAT
0
20
40
60
80
100
120
140
1989 1993 1997 2001 2005 2009
P e n c e
p e r l i t r e
Excl. Duty & VAT
Source: Wood Mackenzie/OPAL *The price of petrol in figure 7.1 is in money of the day
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Pump Prices of Diesel 2009
0
20
40
60
80
100
120
UK Neth Italy Fra Ger Bel Lux Spain Ire
P e n c e
p e r l i t r e
Exc luding duty & VAT Duty and VAT
7.4 European Pump Prices
Fuel Price and Tax Comparison
0
50
100
150
200
1 99 0 1 99 2 1 99 4 1 99 6 1 99 8 2 00 0 2 00 2 2 00 4 2 00 6 2 00 8
1 9 9 0
=
1 0 0
Duty & Vat
Pre Tax Price
7.6 Fuel Price and Tax
Comparison
• Thepre-taxpriceofdieselonlyrecentlyincreasedrelative to 1990 levels, having remained below RPI
adjusted 1990 prices until into 2004
• DutyandVATsteadilyincreasedrelativeto1990levels throughout the 90s, until they were effectively
frozen following protests in September 2000
• Despitetheincreaseinpre-taxpricesin2008,reflecting the rising cost of crude oil, the ratio of pre-
tax prices to duty and VAT is below the 1990 level
Source: Wood Mackenzie/ONS
• ThepumppriceofmajorbranddieselintheUKwasthe highest in Europe in 2009, reflecting the high level
of duty paid on fuel in the UK
• TheUKistheonlymajorEuropeancountrytoapplythe same duty rate to diesel and petrol
Source: Wood Mackenzie/OPAL
Pre-Tax Diesel and Crude Prices
0
10
20
30
40
50
60
1988 1992 1996 2000 2004 2008
P e n c e
p e r l i t r e
Diesel Price
Crude Price
7.5 Pre-Tax Dieseland Crude Prices
• Thepre-taxpriceofdieseliscloselyrelatedtotheprice of crude oil
• The£/$exchangeisakeyfactorinfluencingfuelprices
Source: Wood Mackenzie/OPAL
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8. Filling Stations
Total Sites
0
5000
10000
15000
20000
25000
30000
35000
40000
1973 1979 1985 1991 1997 2003 2009
N u m b e r o f s i t e s
8.1 Number of Sites
• Attheendof2009therewere8,921fillingstationsin the UK
• Thenumberoffillingstationsisnowaroundaquarter of the 1970 total
• Overthepasttenyears,thenumberofsiteshasbeen falling at a rate of approximately 450 per year
Over the last forty years the number of filling stations
in the UK has reduced dramatically, from over 37,500 in
1970 to 8,921 at the end of 2009. Recently around 450
filling stations have been closing each year due to strong
competition between fuel retailers and the increasing
costs of compliance with environmental regulations. This
favours large service stations with lower overheads per
litre sold. As a result many smaller filling stations have
become economically unviable.
The only sector that grew in 2009 was large supermarket
sites, which continued to show growth in site numbers,
sales volumes and market share.
8.2 Ownership of Sites
• Manyfillingstationsownedandoperatedbyboth oil companies and independent retailers have closed
due to competition and low returns on investments
• Thenumberofsupermarketsiteshasbeenincreasing
• Independentsitesstillaccountforthemajorityofpetrolstations, accounting for almost 62% of total number
• Inthelastfewyearsseveraloilmajorshaveexited the UK retail sector
Supermarket Sites
0
200
400
600
800
1000
1200
1400
1 99 0 1 99 2 1 99 4 1 99 6 1 99 8 2 00 0 2 00 2 2 00 4 2 00 6 2 00 8
N u m b e r o f s i t e s
• Attheendof2009therewere1,220 supermarket filling stations
in the UK
• Around14%offillingstationsarenow owned by supermarkets
8.3 Supermarket Sites
Source: Energy Institute until 2005; Catalist onwards Source: Energy Institute until 2005; Catalist onwards
Source: Energy Institute until 2005; Catalist onwards
Ownership of Sites
0
5000
10000
15000
20000
25000
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
N u m b e r o f s i t e s
Supermarket Oil Companies Dealer / Independent
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Supermarket Share of Retail Sales
0
10
20
30
40
50
1995 1997 1999 2001 2003 2005 2007 2009
% o
f s a l e s
Petrol
Diesel
8.4 Supermarket Shareof Retail Sales
Access to Filling Stations 2008
0
50
100
150
200
250
300
350
England Wales Scotland Northern Ireland
S i t e s / m i l l i o n p e o p l e
8.6 Access to Filling
Stations
• ThenumberoffillingstationspercapitaishighestinNorthern Ireland
• SeeUKPIAbriefingpaper–“Fuel Supply to Rural
Filling Stations” for more information
Source: ONS / Catalist
• In2009theshareofretailsalesofdieselbysupermarkets had risen from 34 to a little over 35%
respectively whilst petrol slightly declined to 40%
• Justunder40%ofthetotalretailfuelssectorisnowcaptured by supermarkets
Source: DECC (ETS)
Throughput per Site
0
2
4
6
8
10
12
14
1996 1998 2000 2002 2004 2006 2008
M i l l i o n l i t r e s / y e a r
Others Supermarkets
8.5 Throughput per Site
• Theaveragethroughputofallfillingstationshasrisenmarkedly since 1994 to around 4 million litres per year
• Theaveragesupermarketsitethroughputiscurrently just under 12 million litres per year
Source: DECC / Energy Institute / Catalist
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Relative Vehicular Emissions of Pollutants - 1990 base
0
20
40
60
80
100
120
Benzene SO2 1,3Butadiene
NOx VOC PM10 CO
% 1
9 9 0 l e v e l s
1995 2000 2008
9. Air Quality
9.1 Vehicular Emissions
• Emissionsofexhaustgaspollutantshavebeensignificantly reduced from 1990 levels
• ThelargestreductionhasbeenmadeforSO2
through the introduction of zero sulphur petrol and
diesel and this reduction is expected to continue
with the move to zero sulphur fuels for off-road
machinery vehicles set for 2011
One of the key drivers for the oil industry is reducing
the environmental impacts from the use of fuels. Since
1990 road fuels and vehicles have become significantly
cleaner, resulting in much lower exhaust emissions
despite an increase in traffic levels of almost 25%. In
urban areas, air quality has improved. In rural areas,
most episodes of poor air quality are due to low level
ozone from pan-European sources.
Number of Days when Air Pollution is Moderate or Higher
0
20
40
60
80
100
120
1993 1995 1997 1999 2001 2003 2005 2007 2009p
A v e r a g e n u m b e r o f d a y s
Rural Average Urban Average
9.2 Air Pollution
• Airpollutioninruralandurbanareashasfluctuatedover time but there has been a general long term
decline in high air pollution days at both urban andrural monitoring sites
• Thevariabilityofweatherfromyeartoyearplaysan important role; for example, the hot summers
of 2003 and 2006 resulted in high pollution levels
mainly caused by ozone
• Thecomparativelycoolersummerin2007ensuredair pollution reverted to low levels
Number of Days Exceeding 100 g/m3 of Ozone
0
10
20
30
40
50
1990 1 992 1994 1996 1998 2000 2002 2004 2006 2008
N u m b e r o f d a y s
R ur. Av. U rb . Av. O bj.
• GlobalemissionsofVolatileOrganicCompounds and NOx create a
baseline ozone concentration of
approximately 60 µg/m3 in the
NorthernHemisphere
• Thelonghotsummersin2003and2006 caused an increase in the
number of days which exceeded the
target concentration of 100 µg/m3
• Thenarrowgapbetweenambientlevels in air blowing in from the
Atlantic and the maximum target
levels makes ozone a difficult
pollutant to control, especially as
episodes are usually caused by
ozone from Europe
9.3 Ozone
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
Source: DEFRA/AEA Energy & Environment
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Range of PM10 Concentrations 2008
0 5 10 15 20 25 30 35 40 45 50 55 60 65
kerbside
urban centre
roadside
urban background
Concentration ( g/m3)
9.7 Range of
PM10 Concentrations
• IntheUK,PM10 concentrations are highest at
kerbside locations next to busy roads in inner cities
Primary Particulate Matter Sources 2008
Road
transport
18%
Residential
14%
Other
68%
9.4 Primary ParticulateMatter
Annual Mean PM10 Concentrations at Urban Sites
Objective (by end 2010)
2008200620042002200019981996199419920
10
20
30
40
50
60
C o n c e n t r a t i o n ( g / m 3 )
Lowest site value
Highest site
value
UK Average
9.6 Annual Average
PM10 Concentrations
• UKaveragePM10 concentrations at urban sites fell so
considerably that the 2010 objective, of an average
20µg/m3, was reached over two years ahead of
schedule
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
• In2007thecombustionofroadfuelscontributed18%of the UK’s primary emissions of particulate matter
• Theresidentialsectorproduced14%oftheemissions,with the rest produced by other sources including
industry and power generation
• AmbientlevelsofPM10 include fine particles from
primary (around a third), secondary and other sources
Source: DEFRA/AEA Energy & Environment
Road Transport PM10 Emissions
0
10
20
30
40
50
197 2 19 76 1 980 1984 1988 1 992 1996 200 0 20 04 2 008
P M 1 0 e m i s s i o n s ( k t o n n e s )
9.5 Road Transport PM10 Emissions
• Emissionsofparticulatematter(PM10) from road
transport peaked in 1994 at 44,000 tonnes
• Sincethenemissionshavefallenbyover40%due to tighter standards for vehicular emissions and lower
sulphur content of fuels
• However,thisisnothelpedbytheincreaseddieselisation of the car park, since PM10 emissions
are higher from diesel than petrol
Source: DEFRA/AEA Energy & Environment
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Range of NO2 Concentrations 2008
0 10 20 30 40 50 60 70 80 90 100
roadside
urban centre
urban background
suburban
Concentration ( g/m3)
9.11 Range of
NO2 Concentrations
• SomemonitoringstationsintheUKstillrecordannualaverage concentrations that do not meet the UK air
quality target of 40 µg/m3
• NO2 is a greater problem in large cities, near busy roads
and around airports
Sources of NOx 2008
Road transport
32%
Energy
industries
25%
Other
43%
9.8 Sources of NOx
Annual Mean NO2 Concentrations at Urban Sites
Objective
(by end 2005)
0
20
40
60
80
100
120
140
1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
C o n c e n
t r a t i o n ( g / m 3 ) Highest site value
Average
Lowest site value
9.10 Annual Average
NO2 Concentrations
• Nitrogendioxideislargelyformedintheatmosphere from emissions of NOx
• AnnualNO2 concentrations in the UK have fallen
by 45% since 1989
• Thesereductionswereachievedbyreducedemissions from power generation, industry and
road transport
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
• Nitrogenoxides(NOx) are mainly formed as a
by-product from the combustion of fossil fuels
• 25%oftheUK’stotalNOx emissions in 2007 were
from energy industries
• Thelargestsinglesourceofemissionswasroadtransport, producing 32% of the total
• TighterEUexhaustemissionstandardswillreducevehicle NOx emissions
Source: DEFRA/AEA Energy & Environment
Road Transport NOx Emissions
0
200
400
600
800
1000
1200
19 72 1 976 19 80 1 98 4 1 98 8 1 99 2 1 996 2 00 0 2 004 2 00 8
V e h i c l e e m i s s i o n s ( k t o n n e s )
9.9 Road TransportNOx Emissions
• RoadtransportNOx emissions have fallen by
almost 60% from the 1990 peak
• Thesereductionsarisefromtheuseofoxidationcatalysts (diesel vehicles) and catalytic converters
(petrol vehicles) which have been enabled by lower
sulphur in diesel and unleaded petrol
Source: DEFRA/AEA Energy & Environment
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CO Limit Exceedences
0
25
50
75
100
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
P e r i o d s e x c e e
d i n g 1 0 m g / m 3
UK Average Highest site value
9.15 CO Limit
Exceedences
• Since1990allDECCreportingstationshaverecorded CO concentrations below national and
EU health objective levels
Sources of Benzene 2008
Residential
44%
Other 15%
Manufacturing7%
Road Transport 13%
Fugitive Emissions
from Fuels 9%
9.12 Sources of Benzene
Sources of CO 2008
Residential13%
Other 32%
Roadtransport55%
9.14 Sources of CO
• Carbonmonoxideisformedfromtheincompletecombustion of fossil fuels
• In2008roadtransportcontributed55% of the UK’s carbon monoxide emissions
• Theresidentialsectorproduced13%ofemissions
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
• In2008roadtransportcontributed13%oftheUK’sbenzene emissions
• StageIIVapourRecoveryisbeingfittedtolargepetrol stations
• Benzeneisnaturallypresentincrudeoilandisalsoformed during refining
• Mostbenzeneisremovedtocomplywithspecifications
Source: DEFRA/AEA Energy & Environment
Road Transport Benzene Emissions
0
10
20
30
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
B e n z e n e e m i s s i o n s ( k t o n n e s )
9.13 Road TransportBenzene Emissions
• Emissionsofbenzenefromroadtransporthavereduced significantly since 1990 due to the
introduction of exhaust after-treatment technology
enabled by unleaded petrol
• In2000emissionsofbenzenewerefurtherreducedfollowing the lowering of the benzene and aromatics
limits in petrol
Source: DEFRA/AEA Energy & Environment
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A i rQual i t y
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1,3-Butadiene Concentration 2007
0.0
0.5
1.0
1.5
2.0
2.5
Glasgow
Kerbside
London
Marylebone
Road
Cardiff Centre London Eltham Harwell
M a x i m
u m r
u n n i n g a n n u a l m e a n ( µ g / m 3 )
Target
Road Transport Emissions of VOCs
0
250
500
750
1000
1 97 2 1 97 6 1 980 19 84 1 98 8 1 99 2 1 99 6 20 00 2 00 4 2 00 8
V O C
e m i s s i o n s ( k t o n n e s )
9.19 Road Transport
Emissions of VOCs
• RoadtransportemissionsofVOCshavedramaticallyreduced since 1989 falling by over 90%
• Thisreductionhasresultedfromtheintroductionofcatalytic converters on cars and the switch to more
diesel vehicles
Road Transport 1,3-Butadiene Emissions
0
2
4
6
8
10
14
1990 1992 1994 1996 1998 2000 2002 2004 2006 2008
V e h i c l e e m i s s i o n s ( k t o n n e s )
9.16 Road Transport 1,3-Butadiene Emissions
Sources of VOCs 2008
Road transport
14%
Others
19%
Residential
6%
Solvent and
other product
use
41%
Fugitiveemissions from
fuels
20%
9.18 Sources of VOCs
• In2008roadtransportcontributed14%oftheUK’svolatile organic compound emissions
• Themainsourceofemissionsisfromtheuseofsolvents and paints
• Refining,storageanddistributionofoilproducts
were 7% of the total emissions
Source: DEFRA/AEA Energy & Environment Source: DEFRA/AEA Energy & Environment
• Emissionsof1,3-butadienehavereducedbyalmost90% since 1990
• Furtherreductionsareexpectedasagreaterproportion of vehicles meet new car exhaust
emissions standards
Source: DEFRA/AEA Energy & Environment
9.17 1,3-ButadieneConcentration
• In2008,allDEFRA/AEAairqualitymonitoringstations for 1,3-butadiene in the UK reported
maximum running annual averages far below the
maximum permitted level of 2.25 µg/m3
Source: DEFRA/AEA Energy & Environment
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Greenhouse Gases and Commitments
0.00
200.00
400.00
600.00
800.00
1000.00
1990 1994 1998 2002 2006 2010 2014 2018
E m i s s i o n s ( m t C O 2 e / y e a r )
B as ke t o f g re en ho us e ga se s C ar bo n di ox id e
Carbon budgets
Kyoto target by 2008-2012
10. Greenhouse Gases
10.1 Greenhouse Gases
and Commitments
• TheUKisontracktomeettheKyotoprotocol’srequirement to deliver a 12.5% reduction in greenhouse
gases compared to 1990 levels by 2012
• The2009UKLowCarbonTransitionPlansettoreduce 34% of greenhouse gas emissions by 2020
relative to 1990.
• Emissionsin2010havealreadybeenreduced by 21%
A key driver for the downstream oil industry is the
UK Government’s commitment to reduce emissions
of greenhouse gases by 80% by 2050 relative to 1990
levels. The main greenhouse gas is carbon dioxide,
CO2. Emissions of CO2 from road transport have
risen by a rate well below the 14% increase in vehicle
kilometres over the last decade. Improvements in vehicle
efficiencies enabled in part by cleaner fuels are expected
to reduce emissions in the future.
Sources of Carbon Dioxide 2008
Other 8%
Residential15%
Energy Supply39%
Business16%
Road Transport22%
10.2 Source of Carbon
Dioxide
• Roadtransportproducesapproximately22%oftheUK’s CO2 emissions
• Theenergysupplyindustry,alongwiththeresidentialand business sectors, are also major sources of CO2
• Carbondioxideaccountedforanestimated85%ofthe UK’s man-made greenhouse gas emissions in
2008
Road Transport CO2 Emissions
0
20
40
60
80
100
120
140
1972 1978 1984 1990 1996 2002 2008
E m i s s i o n s ( m t C O 2 )
10.3 Road Transport CO2 Emissions
Source: DECC Source: DECC/AEA Energy & Environment
Source: DECC/AEA Energy & Environment
• Since1990,emissionsfromroad
transport have risen at a much lowerrate than vehicle mileage
• Thiscanbeattributedtotheuseofmore efficient vehicle technologies
enabled by cleaner fuels, and an
increased proportion of diesel vehicles
• TheCO2 levels from fuel use will
continue to reduce with increasing use
of biofuels as required by the RTFO
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Sources of Methane 2008
Agriculture
37.59%
Landfill41.45%
Other
6.10%
Coal Mines
5.71%
Road Transport
0.26%
Gas Leakage
8.89%
Sources of N2O 2008
Industrialprocesses
7%Road transport
3%
Agriculture77%
Other 13%
10.7 Sources of N2O
• In2008roadtransportwasresponsibleforaround3%, down from 4% the previous year, of the UK’s
total emissions of nitrous oxide, N2O
• Agricultureisthemainsourceaccountingforovertwo thirds of emissions, mainly from agricultural soils
• Weightedbyglobalwarmingpotential,nitrousoxideemissions accounted for about 5% of the UK’s
man-made greenhouse gas emissions in 2008
New Car Fleet Average CO2 Emissions
140
150
160
170
180
190
200
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
C O 2
g / k m
EU ave rage UK Business UK Pr iva te UK Aver age
10.4 CO2 from New Cars
Road Transport Emissions of Methane
0
5
10
15
20
25
30
35
1972 1978 1984 1990 1996 2002 2008
E m
i s s i o n s ( k t o n n e s )
10.6 Emissions of Methane
• Despitethelowlevelofemissions,reductionsarestill being achieved as a result of the introduction
of exhaust after-treatment technologies
• Emissionsin2008were80%lowerthanthepeakaround 1990
Source: DECC/AEA Energy & Environment Source: DECC/AEA Energy & Environment
• UKaveragenewcarCO2 emissions have fallen every
year on record
• FutureemissionsofCO2 from road transport will
continue to be lowered by further improvements in
vehicle efficiency
• AstheUK’soldervehiclesarereplacedandmore diesel cars purchased, the fleet efficiency will improve
• Thecurrenttrendtosmallervehicleswillalso contribute to lower emissions
Source: SMMT/European Commission
10.5 Sources of Methane
• Roadtransportisnotamajorcontributortomethane emissions, producing less than 0.3%
of the UK total in 2008
Source: DECC/AEA Energy & Environment
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RIDDOR >3 Day Injuries 2007/08
0
200
400
600
800
1000
Extraction& Utility
AllManuftg
All UK AllService
Ref Cont
MktEmpl
Ref Empl
> 3 D a y i n j u r i e s / 1 0 0 , 0
0 0 w o r k e r s
11. Health and Safety
11.1 RIDDOR >3 Day
Injuries by Sector
• Significantlyfewerinjuries(RIDDOR>3Day)occurat refineries than in the manufacturing sector as a
whole
• Injuriesindownstreamoilmarketingarelowerthanthe UK average for other service sector employees
The refining and marketing industry continued to
maintain very high standards of occupational safety
in 2008. It remains one of the safest manufacturing
industries in the UK, with proportionately fewer
injuries occurring than in the manufacturing sector as
a whole. The UK downstream industry also compares
favourably in terms of safety performance with European
competitors, having consistently fewer reported injuries
amongst both employees and contractors. Particularly
strong improvements have been made in contractor
safety since the 1990s and these have been helped by
the introduction of Contractor Safety Passport Schemes.
RIDDOR >3 Day Injuries
0
100
200
300
400
500
600
Mkt Employ ee s Refy Employ ee s Re fy Con tractors
> 3 D a y i n j u r i e s / 1 0 0 , 0
0 0 w o r k e r s
2000-01 2001-02 2002-03
2003-04 2004-05 2005-06
2006-07 2007-08
11.2 RIDDOR >3 Day Injuries
by Category of Worker
• In2008,thefrequencyofinjuries(RIDDOR>3Day)fell for refinery contractors to their lowest levels
recorded
• Althoughmarketingandrefiningemployeeinjuriesincreased over the last year, they have both stayed
well below their peak range
Refining Injuries
0
50
100
150
200
250
Medical Treatment
Cases
Restricted Work Injuries Lost Work Injuries
R e p o r t e d i n c i d e n t s
200 0 200 1 200 2 2 003 2 004
200 5 200 6 200 7 2 008
• Injuriesreportedatrefineriesin2008remain around the very low levels
seen over the past few years
• Thisreflectsacontinuedhighlevelof attention to safe practices
11.3 Refining Injuries
Source: UKPIA/HSE Source: UKPIA
Source: UKPIA
1 1
H
lt h
d S
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Refining Lost Work Injury Frequency
0
1
2
3
4
5
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
L o s t w o r k i n j u r i e s / m i l l i o n h r s
Contractor
Employee
11.4 Refining Lost WorkInjury Frequency
Marketing Lost Work Injury Frequency
0
2
4
6
8
10
2000 2001 2002 2003 2004 2005 2006 2007 2008
L o s t w o r k i n j u r i e s / m i l l i o n h r s
Contractor
Employee
11.6 Marketing Lost Work
Injury Frequency
• Lostworkinjuriesamongstmarketingcontractors and employees have in recent years converged,
though with a slight increase in 2008, remain around
the very low levels seen over the past few years
• The‘ContractorSafetyPassportScheme’for forecourt contractors introduced by UKPIA in 1999
helped achieve this
Source: UKPIA
• ‘Contractor’lostworkinjuriesatrefinerieshavereduced in frequency since 1997 reaching the lowest
ever recorded levels. Recorded levels for contractors
are now almost as low as those of refinery employees
• Theintroductionofrefinery‘ContractorSafetyPassports’ has contributed to this fall over the
last decade
Source: UKPIA
Refining Lost Work Injuries
0
2
4
6
8
2001 02 03 04 05 06 07 08 2001 02 03 04 05 06 07 08
UKPIA CONCAWE
L o s t w o r k i n j u r i e s / m i l l i o n h r s
Ref Staff Ref Contr
11.5 Refining Lost WorkInjuries
• ComparisonwithEuropeansafetydatafromCONCAWE indicates that UK refinery employees are
less likely to suffer a lost work injury than European
counterparts
• CONCAWEistheEuropeanoilindustry’sassociationfor environment, health and safety
Source: UKPIA / CONCAWE
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Crime Related Injuries incidents per quarter per 100 sites
0
1
1
2
2
3
3
4
2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 Q4 2009 q4
Major Other
12.1 Crime Related
Injuries
• Thepreviouslyrisingtrendincrimerelatedinjurieshas been largely reversed since 2003
• MajorinjuriesarereportableunderRIDDOR
• Themajorityofreportedinjuriesaresufferedbystaff
BOSS (British Oil Security Syndicate Ltd.) is an
independent trade organisation and forecourt crime
campaigner dedicated to reducing criminal activity on
service stations which cost the industry around £20
million in 2009. Its members are the oil companies BP,
Shell, Chevron and Total, as well as members of the
Retail Motor Industry Federation – Petrol. BOSS works
closely with local police forces, the Home Ofce and
forecourt owners and operators, representing about
6,000 fuel station retailers in the UK who employ over
55,000 people.
Developing procedures to ensure the safety of staff
and customers and to reduce operational losses are
the primary drivers. The major source of loss arises
when motorists drive away without paying after taking
fuel (Drive Offs) and customers fail to return and pay
after claiming to have no means of payment with them.
BOSS collects statistical information from almost
1,800 service stations supplied by its members and
the charts below show the quarterly incident rates
of different types of crime. The data is also used to
estimate the industry loss each year.
Visit www.bossuk.org for more information
Type of Weapon incidents per quarter per 100 sites
0
1
2
3
2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 Q4 2009 q4
Gun Knife Other
12.2 Types of Weapon
• Thesubstantialreductionofreportingofincidentsinvolving weapons in 2008 was maintained in 2009
Source: BOSS Source: BOSS
12. Service Station Crime
1 2
S erv i ceS t at i on
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Physical Violence & Robbery incidents per quarter per 100 sites
0
1
2
3
4
5
6
7
2001q4 2002 q4 2003 q4 2004 q4 2005 q4 2006 q4 2007 q4 2008 q4 2009 q4
Physical violence Robbery
12.3 Physical Violenceand Robbery
• Robberyistheftwithactualorthreatofphysicalviolence
• Physicalviolenceincreasedin2009comparedwith2008 and continues to be a cause of concern
Source: BOSS
Drive off & No Means to Pay Losses Loss per quarter £000 per 100 sites
0
10
20
30
40
50
60
70
80
90
100
2005 q1 2005 q3 2006 q1 2006 q3 2007 q1 2007 q3 2008 q1 2008 q3 2009 q1 2009 q3
12.5 Drive-off and No
Means to Pay Losses
• Drivingoffwithoutpayingforfuelremainsthemajorsource of loss at fuel sites
• Motoristswhofillupwithfuelbuthavenomeansto pay and who do not clear the resulting debt constitute
the second highest source of loss
• Theimprovementinthesecondhalfof2008wasassisted by falling fuel prices
• Thetrendreversedin2009butreportedlosses were lower than in previous years
Estimated Industry Losses £million per year
0
5
10
15
20
25
30
35
2001 2002 2003 2004 2005 2006 2007 2008 2009
Drive Off No Means of Payment Other
12.6 Estimated Injury
Losses
• Industrylossesareestimatedbyextrapolatingdatacollected by BOSS
• ‘Nomeanstopay’losseswerecollectedinconsistently prior to 2004
• Lossesexcludefraud,creditcardlosses,shoptheft,property damage and consequential losses such as
staff time following violent incidents
Source: BOSS Source: BOSS
1 2 . S er v i c e S t at i on
C r i m e
£ loss per quarter per 100 non 24 hr sites Burglary Losses
0
5000
10000
15000
20000
25000
2006 q2 2006 q4 2007 q2 2007 q4 2008 q2 2008 q4 2009 q2 2009 q4
12.4 Burglary Losses
• Burglariesgenerallytakeplacewhenservicestations are closed so the majority occur on
non-24 hour sites
• Thechartrelateslossestonon-24hoursites
• Burglarylossesexcludepropertydamage
• Lossesin2009fellsubstantiallycompared with 2008
Source: BOSS
statistical review 2010
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UNITED KINGDOMUnited Kingdom Petroleum Industry Association
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Chancery Lane, London WC2A 1HP
Tel: 0207 269 7600
Email: [email protected]
Website: www.ukpia.com